The Bank of England's stimulus plan lifted British equities to one-year highs on Friday, while world stocks inched up and sterling recouped some of its losses after tumbling to a one-week low.
Acting on its chief economist's wish to use "a sledgehammer to crack a nut", the BoE cut interest rates to next to nothing and unleashed billions of pounds of stimulus to cushion against the impact of Britain's vote to exit the European Union.
The moves pushed sterling 1.6 percent lower against the dollar on Thursday, while British government bond yields hit record lows and shares rose 1.6 percent. .FTSE
The main FTSE 100 index .FTSE extended those gains, rising another half percent to its highest level since July 2015. MSCI's world equity index rose for a second day, while emerging equities jumped 1 percent, approaching one-year highs .MSCIEF. .MIWD00000PUS.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS extended gains to 1.1 percent, and were headed for a 0.8 percent weekly gain.
But Japan's Nikkei .N225 surrendered its earlier gains to close flat. It fell 1.9 percent in a week marked by investor disappointment over the new stimulus measures announced by the country's central bank and government.
Reference: Reuters
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